Data Literacy for ERP End Users

Data Literacy for ERP End Users

Currently every business boasts a significant level of digital presence in its operations sometimes through multiple computer systems. Notably businesses in the finance or retail sectors utilize ERP (Enterprise Resource Planning) systems to drive their day to day operations. From Point of sale systems, desktop based tools and web based ERP software. The end result of using ERP systems for business operations is that there is a lot of data generated and transferred across multiple channels. This data is very crucial in informing business decisions and providing a visibility of business performance. In some cases, ERP system end users are not well-equipped with basic skills to easily interpret data and draw meaningful insights. ERP end users include the cashiers, procurement officers, accountants and supervisors.

Scope of Data Knowledge

Onboarding end users to ERP systems entails an applicable level of software knowledge to be able to interact and utilize the software effectively. Users with basic digital literacy knowledge can utilize ERP for routine tasks. Additionally with proper digital training users are able to gain more technical skills required for advanced ERP functionalities. Sometimes the training phase for ERP implementation takes a longer time frame than the implementation phase. While organizations invest highly on training their users on using ERP tools very little effort is directed towards data literacy. ERP tools generate high volumes of data that is very valuable to organizations looking to make data driven business decisions.

ERP end users need to understand how data is generated, stored and interpreted. Other key focus areas for data literacy include data security to understand the best practices in assigning user rights to ensure data is only accessed by the authorized personnel. For instance in a retail ERP tool the stock inventory data should only be accessible by the procurement team. Having access to stock movement reports makes it easy for the procurement team to make purchase orders based on the fast moving products and avoid wastage by purchasing products that will not sell out easily. The cashiers only need access to the point of sale and would not require access for the finance.

Data accuracy is another important aspect of data literacy that ERP end users need to understand. Inaccurate data leads to wrong reporting and assumptions that the system is not functioning as it should. For instance, if a user fails to capture some data or enters it wrongly it might create the view that the system is not working as expected. Another common issue is that users complete some processes manually instead of relying on the system. This is especially the case in situations where the system is not reliable or proper change management has not been put in place. Employees might be out to show that the system is inefficient or simply be against the idea of completing operations through the system.

Data Integrity - The consistency of data in ERP systems is very valuable to end users who may want to draw more meaning from the data. For instance, in a case where user demographic data is not consistent then it might affect reporting and analysis on customer purchase behaviors.

Use Cases of Data Literacy for ERP End Users

ERP solutions form a reliable knowledge base for the organization's historical data. In making business decisions stakeholders might want to look back and understand how performance has changed over time or what decisions are most favorable for the prevailing business needs. For instance a business might have run an ad campaign for product X a few years ago and are now contemplating running the same campaign. Going back to the historical data could help the business understand if the campaign had meaningful impact for instance based on the sales gained at that period and feedback from customers.